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PMI PfMP Exam - Topic 6 Question 105 Discussion

Working to manage portfolio value is a continuous task. In doing so, as the portfolio manager, you review the monthly and any ad hoc reports submitted by component managers. This month you saw there was an excellent opportunity for major cost savings in two components in the top five on the portfolio list; however, to realize this cost reduction, these components require resources to be reallocated from other components in progress for six months. These forecasts then:
D) Are recommended for consideration by the Portfolio Review Board
A) Should be verified by independent estimators for accuracy
B) Require validation by the CFO and his staff
C) Should be accompanied by an analysis of earned value data to ensure the components are using the same method of reporting

PMI PfMP Exam - Topic 6 Question 105 Discussion

Actual exam question for PMI's PfMP exam
Question #: 105
Topic #: 6
[All PfMP Questions]

Working to manage portfolio value is a continuous task. In doing so, as the portfolio manager, you review the monthly and any ad hoc reports submitted by component managers. This month you saw there was an excellent opportunity for major cost savings in two components in the top five on the portfolio list; however, to realize this cost reduction, these components require resources to be reallocated from other components in progress for six months. These forecasts then:

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Suggested Answer: D

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Cecil
3 days ago
Wait, reallocating resources for six months? That sounds risky.
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Elinore
8 days ago
Totally agree, C is also important for consistency!
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Mari
14 days ago
I think A is crucial for accuracy.
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Raina
19 days ago
Totally agree, the Portfolio Review Board should definitely consider this!
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Domonique
24 days ago
Wait, are we sure those cost savings are real?
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Nieves
29 days ago
Sounds like a solid plan, but reallocating resources could be risky.
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Hortencia
1 month ago
I think validation by the CFO is a must.
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Jonell
1 month ago
Definitely need to verify those forecasts for accuracy!
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Rima
1 month ago
I’m uncertain about the best approach here. Should we prioritize independent verification or CFO validation? It feels like both could be important.
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Joni
2 months ago
I feel like the Portfolio Review Board should definitely be involved, but I can't recall if they need to see all forecasts or just the ones with significant changes.
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Graham
2 months ago
This reminds me of a practice question where we had to analyze earned value data. I think option C makes a lot of sense here.
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Stephaine
2 months ago
I remember we discussed the importance of validating forecasts, but I'm not sure if it should be the CFO or independent estimators who do that.
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